NGC Energy India Pvt Ltd - a joint venture between Oman-based National Gas Company and Singapore-headquartered Petredec - would jointly set up a liquified petroleum gas import and storage terminal at Krishnapatnam Port at an investment of Rs 400 crore.
NGC Energy would import and store propane, butane at the refrigerated terminal which would have a storage capacity of 30,000 tonne and a throughput capacity of 1.4 million tonne per annum, company officials said here.
The foundation stone for the project was laid by NGC Energy chairman Abdulla Suleiman Hameed Al Harthy recently.
"The joint venture structure is 60 and 40 per cent (with Petredec). Total investments will be Rs 400 crore. We will be commencing construction very soon," NGC Energy India director Nalin Kumar Chandna said.
He said they have set a target of completing the construction in 18 months.
"Customers will be from manufacturing industries, glass industry, ceramic industry," he said adding the project would generate around 400 direct and indirect jobs.
"We sincerely thank all the government officials in Andhra Pradesh and Krishnapatnam Port officials for their support," Harthy said.
On the joint venture, a company official said National Gas Company signed a definitive agreement to transfer 40 per cent of its shares to Petredec in September this year.
India was world's second largest consumer and importer of LPG. LPG demand was growing seven per cent annually from 24 to 42 MTPA, an official said.
China is the largest consumer of LPG.
To a query, an official said the Krishnapatnam Port's strategic location to hinterland of Andhra Pradesh, Telangana, Karnataka and Tamil Nadu was the reason to select it for the project.